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Milestone provides update on settlement agreement for failed placing
Milestone Group stated on Friday that City of London Markets failed to make a payment as per the compromise agreement between the two entities.
The agreement, which was entered into on 22 January, stems from a dispute over a failed placing in October 2016 where Milestone did not receive £1.3m in gross proceeds from the placing after issuing 83.3m shares at a price of 1.5p each.
London Markets agreed to waive all rights to shares and pay a £125,000 settlement.
Tony Sanders, chief executive officer of Milestone, said: "The board has taken the view that it is in the best interest of the company to close this matter on the revised terms as the cost and use of management time being spent is causing significant disruption to Milestone's business development."
The company said that "in order to bring this matter to a close" the company has agreed revised payment terms under which London Markets pay £76,000 on an agreed payment schedule by 27 April plus a further balance of £49,000 in quarterly installments by 30 April 2019.
Milestone Group is a London-based company founded in 2003, which has converted its interests from radio, publishing and television to digital media and technology.
As of 1131 GMT, Milestone Group's shares were down 0.08% at 0.24p.